JD Health Is Set to Raise $3.5 Billion in Hong Kong Debut
What’s new: JD Health International Inc., Chinese e-commerce giant JD.com Inc.’s telehealth unit, is set to raise HK$27.1 billion ($3.5 billion) after pricing its initial public offering at the top end of an estimate range.
The offering of 381.9 million shares at HK$70.58 each will be the second-largest initial public offering (IPO) this year in Hong Kong, after only the HK$30.1 billion secondary listing by JD Health’s parent company in June. The stock starts official trading Tuesday.
The offering attracted 846,200 retail investors, who subscribed for 420 times more than the shares allotted for retail investors. Institutional investors also showed enthusiasm, with 30 times oversubscription.
JD Health brought in six cornerstone investors that agreed to subscribe for as much as 148 million shares, including Singapore sovereign wealth fund GIC, Hillhouse Capital and BlackRock Inc.
The background: The IPO is a sign that investors still have a strong appetite for listings by Chinese mainland issuers in the city following Ant Group Co.’s failed effort last month.
Amid changes in the regulatory environment Ant’s planned $35 billion share sale in Shanghai and Hong Kong was halted Nov. 3, one day before its planned debut. The stumble meant the cash that investors had set aside for Ant was in ample supply for JD Health’s offering.
JD Health is the largest online health-care and pharmacy platform by revenue in China, according to the prospectus. The company recorded revenues of 8.8 billion yuan in the first half of 2020, up from 5 billion yuan in the same period a year earlier.
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